Fragrance Group buys Katong Plaza for $180 mil with potential redevelopment into a new hotel

The existing growth spans a total land area of 34,044 sq ft with a total plot ratio of 3.0. This turns out to a highest gross floor space of 102,132 sq ft.

“We believe this purchase will certainly improve confidence in the cumulative sale industry as developers remain to seek appealing land plots,” claims Lian.

It is currently zoned for business and residential usage however has actually gotten URA approval for resort usage. Lian estimates that the new hotel can yield between 300 and 340 rooms.

Katong Plaza is alongside Roxy Square and the Grand Mercure Roxy Singapore. Many other hotel and resorts close such as Holiday Inn Express Singapore Katong, an IHG Hotel and Village Hotel Katong.

Fragrance Group and its accommodation arm, Global Premium Hotels, are controlled by billionaire real estate builder and hotelier James Koh, the chairperson of both companies. Global Premium Hotels has a collection of brands, including the homegrown Fragrance and Parc Sovereign. In 2019, Fragrance and global lodging group Accor bound to open up 13 brand-new ibis Budget hotels, that were previously Fragrance-branded resorts, along with bringing in the ibis Styles and Mercure labels.

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The other real estate, situated at Waterloo Street, will be a brand-new 502-room resort under the Handwritten Collection brand of Accor. It is a redevelopment of the past Min Yuan Apartments which Fragrance Team acquired en bloc for $141 million in September 2019; and the former Waterloo Apartments, which it obtained in November 2018 for $131.1 million. Both 999-year leasehold locations were amalgamated, and URA approval was obtained for redevelopment into a 500-room resort.

Previous month, Fragrance Group and Global Premium Hotels signed one more contract with Accor to open up two new-build properties with 3 brand-new lodgings by 2027. They are the 808-key Mövenpick Singapore on Hoe Chiang Road, which will be the biggest Mövenpick hotel in the Asia Pacific place. It will certainly also house Mövenpick Living Singapore, a 37-key lodging targeted at travellers looking for prolonged stays.

Fragrance Group might likely redevelop Katong Square right into a brand-new hotel within among one of the Accor brands. After all, Katong Plaza lies in top District 15 in the east and just 120m from the Marine Parade MRT Stop on the Thomson-East Coast Line and the Parkway Parade mall.

Real property developer Fragrance Team has recently acquired Katong Plaza in Marine Parade for $180 million. The sale price equates to a land rate of $1,809 psf per plot ratio (psf ppr), including the land betterment fee.

Katong Plaza is a freehold commercial and residential mixed-use project located at 1 Brooke Roadway. It has 132 strata retail units and 14 residential houses. Proprietors of the retail units are going to be obtaining profits extending from $502,000 to over $6 million, while residential proprietors will be acquiring between $2 million and $5.1 million, notes Terence Lian, Huttons Asia’s head of financial investment sales who agented the arrangement.